What help is available to households, due to increased living costs for 2022?
With the ever-increasing cost of living in 2022, on 26/5/2022 the Chancellor announced grants for all households, to help with the increasing costs of heating homes. There will be different levels of help categorised as:
- Low-income households
- Pensioner households
- Disability households
- All households
What help will low-income households on means tested benefits receive for heating homes?
8 million targeted households are on qualifying benefits, and they will receive £650 as a one off ‘cost of living’ payment. DWP will make this payment in 2 installments which will come out in July and Autumn.
No one needs to apply for this payment, it will be paid automatically into the bank accounts of those who are on qualifying means tested benefits.
What help will pensioner households receive for heating homes?
Pensioners receiving the winter fuel payment will receive the winter fuel payment + an extra cost of living payment of £300. This payment will be received in Autumn.
What help will disability households receiving non means tested disability payments receive?
From September 2022 a one-off cost of living disability payment of £150 will be received on top of the above mentioned £650, if the same household is on qualifying means tested benefits also.
Will households on no benefits receive any help with heating homes?
All households will receive a payment of £400 in October 2022. This grant was originally going to be £200 loan which households had to pay back within their utility bills over the next 5 years. The £200 repayable loan has been abolished and instead replaced with a £400 grant that now does not have to be paid back.
Is there anything else available to help with increased living costs for 2022?
A council tax rebate of £150 for all households on council tax bands A-D should have already been received.
What is the total support available?
- All homes = £400 energy grant (no longer a £200 loan repayable over 5 years).
- Low-income homes £400 + £650 energy grant = £1050.
- Pensioners £400 energy grant + £300 cost of living payment = £700.
- Vulnerable/ disabled £650 means tested benefit grant + 150 disabilities grant + 400 energy grant = £1200.
- Plus, all households with council tax bands A to D will have received £150 council tax rebate.
How will these grants be funded?
The above grants will be funded by temporary extra tax on the profits of oil and gas companies, to raise funds. However, if the oil and gas companies commit to reinvesting their additional profits, they will receive a reinvestment allowance.
What do I need to do next?
All the above-mentioned grants should be received automatically so there is nothing to apply for.
If you need extra advice or guidance from Accountants in Stafford, please get in touch and we will light your way.